One of South Africa’s richest families receives over R1 billion in Capitec shares, and blow for DStv owner
The South African rand remained stable in early trading on Thursday after US President Donald Trump eased market concerns regarding potential military action against Iran.
Like other risk-sensitive currencies, the rand often responds to global factors, particularly US policies. It traded at 16.4050 against the dollar, unchanged from its previous closing level.
On Wednesday afternoon, Trump commented that the violence during Iran’s crackdown on nationwide protests was subsiding, indicating that he was adopting a wait-and-see approach toward the crisis.
The US dollar showed slight strength against a basket of currencies, while gold prices retreated as Trump’s more diplomatic tone lowered the demand for safe-haven assets.
He also stated that he had no intentions of firing Federal Reserve Chair Jerome Powell, despite a criminal investigation by the Justice Department, but noted that it was “too early” to determine his final decision.
South Africa’s local currency is expected to remain within a narrow range as traders continue to monitor the situation in Iran.
Other things to keep an eye on include the independence of the Federal Reserve and the potential extension of the African Growth and Opportunity Act (AGOA) trade preference program, which is set to be discussed in the US Senate.
On the Johannesburg Stock Exchange, the Top-40 index rose by 0.4% in early trade.
On Friday, 16 January, the rand is trading at R16.34 to the dollar, R21.88 to the pound, and R18.97 to the euro. Gold is trading slightly lower at $4,600.88 per ounce, while oil is up to $63.60 a barrel.
5 important things happening in South Africa today
Prime interest rate ‘cartel’ investigation: PSG Group chair Piet Mouton and his associates received R1.5 billion in Capitec shares during Curro’s delisting. Mouton was allocated shares worth over R7 million, while the majority went to the JF Mouton Familietrust, which Mouton manages. [Moneyweb]
Blow for DStv owner: Nearly three years ago, MultiChoice aimed to transform Showmax into its growth engine, but this strategy has faltered. In May 2023, former executive Yolisa Phahle shared plans to generate $1 billion in revenue and attract 16 million subscribers within five years. However, MultiChoice’s latest financial results showed an 88% increase in Showmax’s trading loss, rising from R2.6 billion to R4.9 billion, with revenue falling from R1.027 billion to R753 million. [MyBroadband]
Banks respond to cartel investigation: Standard Bank says it is at ease with its position in response to enquiries from the Competition Commission into lending rates. The competition watchdog has confirmed that its “cartel investigation” into the prime lending rate is at an advanced stage. [News24]
Good news for South Africa: South Africa’s economy is projected to grow by 1.3% in 2025, up from 0.6% in 2024, according to the World Bank’s Global Economic Prospects report. The growth is expected to continue at 1.4% in 2026 and 1.5% in 2027. [Business Day]
NHI compromise rejected: Solidarity has rejected Finance Minister Enoch Godongwana’s call for critics of the National Health Insurance (NHI) to settle their disputes out of court, stating it jeopardises lives. Despite Godongwana’s appeal for unity, Solidarity remains firm in its opposition to the NHI Act.
[Newsday]
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